Warewashing manufacturer Meiko is another brand that cites the UK’s ongoing saga to leave the EU as one of the most significant strategic and commercial risks facing the business.
It noted that the devaluation of the pound from 1.13 in 2017 to 1.10 in 2018 increased pressure on its margins as the majority of its equipment is purchased in euros from Germany.
The weaker pound impacted margins during 2018 as any movement could not be reflected in the selling price, which is set at the beginning of the year.
The directors have attempted to minimise any adverse effect by the timing of payments using judgement when the rates are most favourable, while, like many of its competitors, a general price increase was enforced ahead of 2019.
Despite the burden of currency volatility, the firm will be pleased to have grown its top line and returned to profitability.
Turnover rose 4% to £19m, which was in part attributable to a growth in small machine sales.
Having recorded an operating loss of more than £700,000 in 2017, the brand clawed its way back into the black last year to register an operating profit of £70,000.
Meiko UK provides a complete range of dishwash solutions from undercounter and passthrough models to pot washers and flight machines, giving it the advantage of being able to supply a wide variety of sectors.
Turnover: £19.05m (+4%)
Operating profit: £69,592 (versus a £704,418 operating loss the year before)
Employees: 98 (96)
Directors that served during the year: P Barry, S Scheringer, P Anderson
Ownership: The immediate parent undertaking and controlling undertaking is Meiko AngloAmerican GmbH, incorporated in Germany. The ultimate parent entity is a German foundation which is known as the Oskar und Rosel Meier-Stiftung Foundation.
Financial year end: 31 December 2018